Benefit Prepay Insurance Premium Deductions

Overview

Benefit prepay insurance premium deductions are used to maintain insurance coverage for continuing employees who are on a short work break between periods of active employment. These may include:

  • Faculty, academic staff, limited appointees, student assistants, and employees in training who are on an academic year contract (or an annual contract that does not include work in one or more summer months).
  • Academic staff, university staff, and limited appointees who work a recurring 9-, 10- or 11- month contract.

Benefit prepay insurance premium deductions are in addition to regular insurance premium deductions.

Eligibility

Faculty, academic staff, limited appointees, university staff, student assistants, and employees-in-training that have an academic (9 month) or annual (12 month) contract are eligible for benefit prepay insurance premium deductions if:

  • their contract does not include work during one or more summer months;
  • they are expected to return to benefits eligible employment on or before the start of the fall semester; and
  • they are eligible to maintain insurance coverage through the summer months.

Academic staff, university staff, and limited appointees on a 9-,10-, or 11-month contact on a short work break during the academic year are also eligible.

Continuing employees in a benefits-eligible academic year appointment, who are not participating in the Academic Pay Deferral (9 Over 12) program, will be automatically enrolled in the benefit prepay program. Employees participating in the Academic Pay Deferral program will have summer benefit premiums withheld from their summer paychecks and will not be enrolled in the benefit prepay program.

Deductions

Benefit prepay insurance premium deductions occur in the period of employment between short work breaks and apply to the following plans:

  • State Group Health Insurance
  • Dental Insurance
  • Vision Insurance
  • State Group Life Insurance
  • Individual & Family Life Insurance
  • Accidental Death & Dismemberment Insurance
  • Accident Insurance
  • Income Continuation Insurance

Prepaid insurance premium deductions through payroll mirror the pre/post tax status of deductions during the employment contract period. Premiums paid through the benefits billing process are post-tax.

Employees subject to taxable income under State Group Life Insurance will have taxable income applied to each bi-weekly summer prepay deduction.

Timeline

Starting with the 2025-2026 academic year, benefit prepays will be evenly divided between the first two paychecks of each month during the annual period of active employment. The total amount deducted during this time frame will equal the required employee benefit contributions for the time period encompassed by the short work break.

For employees on a 9-month academic contract whose short work break is during the summer months this means that benefit prepays will be deducted over 18 paychecks during the academic year (first two paychecks of each month). Prior to Fall 2025 benefit prepays were deducted from six to seven paychecks in March, April, and May immediately before the summer break. Prepay deductions spread over your academic year paychecks are for insurance coverage in the months of June, July, and August.

Benefit prepay insurance premiums appear as a lump sum amount on your payslips (Prepaid After Tax, Prepaid Before Tax, Prepaid Taxable).

Periodically your regular benefit deductions and prepay deductions will be reconciled. If you have a change in benefits due to a life event or premium change, your regular benefit deductions and prepay deductions will be adjusted. Premium adjustments can occur at the time of a qualifying life event, annually effective January 1 (health, dental, vision, accident insurance), and/or annually April 1 (State Group Life Insurance and Income Continuation Insurance).

Eligible employees whose benefit prepay insurance premiums are not deducted during the annual period of active employment will be billed directly for the premiums due. Payment must be received by the billing invoice due date or insurance benefits will be canceled due to non-payment. If benefits are canceled due to non-payment, the next opportunity to enroll in some insurance benefits may be during the enrollment period in the fall with an effective insurance coverage date of the upcoming January 1 or if you have a qualifying Life Event.

Resources

Questions

Some frequently asked questions are listed below. After reviewing this information if you have questions about:

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If your employment status changes after benefit prepays are deducted, you may receive deduction refunds.

If you will be terminating employment, and will not return after your short work break, contact your institution human resources office to determine your employment and benefits termination date.

Review the Life Events > Employment Changes web page for information on insurance coverage end dates.

If you anticipate that you will experience a family status change that will change the level of coverage for your insurance (for example, individual to family, family to individual), review the Life Events > Family Change web page. You may also reach out to your benefits contact about the effect on your insurance benefits and your benefit prepay deductions. Some examples of family status changes that may affect your benefit prepay deductions are marriage, adoption, birth, divorce.

If you are paid during the summer for a summer appointment, you may have benefit deductions depending on the benefit and/or retirement plans you are enrolled in (listed below). For some plans you can change your enrollments.

  • Flexible Spending Account (FSA) Program
    • FSA contributions are deducted from 24 paychecks a calendar year (first two biweekly paychecks of the month) for employees paid on an annual or academic year contract.
    • You can change your annual election during the year if you experience a qualifying life event. See the Life Events web page for more information.
    • Your per pay period contribution will automatically adjust based on your annual election, amount contributed year-to-date, and the number of pay periods remaining in the calendar year. Your contributions will not exceed your annual election or the plan limits.
  • Health Savings Account (HSA) Program
    • HSA contributions are deducted from 24 paychecks a calendar year (first two biweekly paychecks of the month). Employees paid on an academic year (9-month) contract will have HSA contributions deducted from 18 paychecks during the academic year (first two biweekly paychecks of the month).
    • You can change your HSA contribution amount at any time.
    • Your per pay period contribution will automatically adjust based on your annual election, amount contributed year-to-date, and the number of pay periods remaining in the calendar year. Your contributions will not exceed your annual election or the IRS limit.
  • Wisconsin Retirement System (WRS)
    • WRS contributions are deducted from summer pay.
    • You are not able to change your enrollment or contribution deductions.
  • UW 403(b) Supplemental Retirement Program (SRP) & Wisconsin Deferred Compensation (WDC) 457 Program
    • Contributions are deducted from summer pay.
    • You can change your contribution amount at any time during the year.
    • Contributions deducted from your summer pay will not cause you to exceed IRS limits. Contributions automatically stop when you reach the IRS limits.

On payslip(s) you receive while on a short work break, you will see the insurance premium costs, as well as the prepay funds being applied to cover those premium costs.

Reach out to your benefits contact if you should have benefit prepay deductions but they have not started.

Health Insurance Opt-Out Incentive payments are processed on 24 paychecks a calendar year (first two biweekly paychecks of the month regardless of if you have pay.

Health Savings Account (HSA) contributions are processed on 18 paychecks during the academic year for employees paid on an academic year (9-month) contract.

If your benefits are canceled due to non-payment of premium you have the following options to re-enroll, if eligible:

  • In the fall with changes effective the following January 1, for State Group Health Insurance, Dental Insurance, Vision Insurance, and Accident Insurance.
  • If you have a qualifying Life Event.
  • Applying for coverage by submitting proof of good health (evidence of insurability) for State Group Life Insurance, Individual & Family Life Insurance, and Income Continuation Insurance. You can apply through proof of good health at any time but approval is not guaranteed.

You can enroll at any time in Accidental Death & Dismemberment Insurance.

Eligible employees can elect to receive their base salary during the 9-month academic period spread over a 12-month period (i.e. 26 pay periods). 9 Over 12 is only available to faculty, academic staff, or limited appointees employed on an academic year basis and must be elected before the start of the academic year. With this program insurance premiums, spending and savings account contributions, and supplemental retirement program contributions are withheld from paychecks during the disbursement period which occurs during the summer.

For information on Academic Basis Pay Deferral (9 Over 12) review the following resources:

Every effort has been made to ensure this information is current and correct. Information on this page does not guarantee enrollment, benefits and/or the ability to make changes to your benefits.

Updated: 08/20/2025